senate agreed to keep taxing from going up on people making less than $400,000 a year. >> let's not let that hold up protecting americans. >> reporter: democrats to give on tax hikes and republicans to compromise on spending cuts. this has some wondering if the votes are there to pass it. >> this looks like a bad deal. >> reporter: the country is expected to go over the fiscal cliff because there is almost no way to move a deal before midnight. but once a deal was passed it could reverse spending cuts and tax hikes before they make an impact. >> depending on the advantage point, the fiscal cliff looks different to different team. and consumer editor tom vacar is here now with three views, washington, business and taxpayers. >> reporter: three indeed. it is not if we are going off

the cliff, it is how hard we are going to hit. >> what we want done here is structure and certainty. >> reporter: there will soon be a deal. >> i think it is the consequences that people really didn't like to see. >> reporter: that is the view from wall street. what they are thinking here on main street. >> be on my comprehension, you know. such a important thing. not leave it for the last minute. >> i think it is apparent they don't answer their constituents anymore. there is interests and lobbyists that are controlling the decision making and we are an after thought now. >> they should do something

about it. we elect these people. >> reporter: he sees it another way. >> i am actually in favor of the fiscal cliff. and i would rather go over it than have a partial solution. >> reporter: he says a deficit will sink us. >> in order for employers to employ we need buyers to buy and the only way we can have that is a strong economy. >> reporter: other important issues, the debt ceiling are looming. >> death issues and a budget -- debt issues and a budget. >> reporter: you are paying for all of it. i am consumer editor tom vacar, ktvu channel 2 news. >> and coming up at 6:00 p.m., ktvu's ken pritchett will break down thim pact the delay is having in -- down the delay is

having here. >> wall street ended the year on a winning note. the dow is up 166 to 13,104., breaking a 5 day losing streak. the nasdaq is up 59 at 3,019. here is what the numbers mean to you. if you invested $10,000 in the dow you would have made more than a 7% profit. the s&p13.5% profit. nasdaq 16%. for that $10,000 investment in the dow $730. $1,340 on the s&p and $1,590 on the nasdaq. >> police are investigating the 46th killing of the year in san jose after a man was shot today. it happened at an apartment

complex this afternoon. police received a 911 call that a man with a gun was in the parking garage. when officers arrived they found a man on the ground next to a car. he died at the scene. witnesses told police the victim got into a fight with two other men. >> there was a confrontation. a weapon discharged. we have a couple people detained and we have the weapon involved in custody. >> investigators are looking at video from the surveillance cameras in the garage and looking for witnesses. firefighters battled huge flames this morning when a gas line burst outside of a home. flames shot into the air. ktvu's alex savage reports on the extra charges firefighters faced to put out the blaze. >> reporter: dangerous situation for san francisco firefighters trying to control

an early morning house fire. flames began shooting from a natural gas line. the fire was essentially gas fed at one point and crews couldn't reach the shut off valve. >> they had to leave it burning till pg&e cut shut it off. we couldn't get to the shut off because of the fire. >> reporter: it took more than two hours for pg&e to dig up the road and shut off the main gas line. firefighters let the gas burn itself off. that was the safest approach. four people inside the home all managed to escape. three were transported to the hospital with minor injuries. he is glad a neighbor woke him up to warn him about the fire. >> luckily the neighbors came

knocking really hard to get us up, because, you know, i was caught in a fire before and i almost didn't make it so i am very grateful. >> the fire began in the garage area and then spread to the gas meeter and grew in size. pg&e said the fire was not related to a faulty line. according to the deputy chief there is nothing at this point to suggest the fire is suspicious still an arson investigator was called in. the home is red tagged. there was so much damage the place is not structurally sound. alex savage, ktvu channel 2 news. there are still 7 hours till we count down to the new year. but the party is over in other parts of the world. >> boy, that is beautiful.

video from one of the first fire works in the world in australia. they rang in 2013 at 5:00 a.m. our time. china three hours later. 4,000 guesses gathered. the celebration included vills projected on -- visuals projected on to the surface of a frozen lake. new year's eve in san francisco could be bigger than last year. ktvu's john fowler is live in san francisco where people are heading out. >> reporter: as the sun is going down it is getting chilly here. this is the embarcadero. barricades up, people starting to mingle and gather here. this is a prime viewing area here south of the ferry building. >> it will be good. yeah. we came out here last year, it

was nice. >> reporter: traffic enforcement began towing away cars an hour ago. there is no stopping here. these folks should have a great view. at the discovery center we found a family, friendly noon year's eve party. 2100 parents and kids. >> great opportunity for the kids to celebrate new year's eve. >> we can't, we are too tired. >> three, two, one. [ cheers and applause ] >> happy new year. >> reporter: we got a preview, hundreds of rockets on this barge anchored in the bay. >> fires every shell at the moment it is supposed to go off in the show. >> reporter: at midnight a 15 minutes of fire and lights. this is last year. last year a quarter million

people jammed here to view this extraordinary fire works display. there could be more tonight because the weather is pretty good. if you plan to come, don't think of driving, take public transit. john fowler, ktvu channel 2 news. >> if you are going to san francisco, share your photos with ktvu. e-mail us or post them on our wall at facebook. look for ktvu. between all the champagne and parking problems, law enforcement advises you use public transportation. bart will run till 3:00 a.m. and will add trains. if you are trying to leave san francisco, check if your line stops at the embarcadero or montgomery because at 8:00 p.m. trains will stop there and you can ride muni for free.

cal train is free after 11:00 p.m. and the last line will leave san francisco at 2:00 a.m. in san jose, vta is free after 7:00 p.m. if you drive tonight and drink, aaa is offering to give you and your car a free ride home. just call 1(800)222-4357 or 1(800)aaa-help. stanford is poised to take on wisconsin in the rose bowl tomorrow. ktvu's fred inglis is live in pasadena where he found cardinals fans ready as well. >> reporter: i am downtown los angeles, l.a. live, 100 yards from me is the staples center where the lakers and the clippers play nba basketball, of course. behind me, there is ice

skating. over left, stanford, they just finished holding a 90 minute rally for the stanford cardinal but the festivity started much sooner than that today. [ music playing ] >> reporter: the ban kicked off today's rose bowl lunch inn. outside crew members were putting the touches on the 44 floats that will appear in tomorrow's rose parade. >> touching up the process. >> reporter: does that mean somebody messed up? >> no. adjustments need to be made. >> reporter: you came from georgia? >> yes, i did. atlanta, georgia. >> reporter: what are they paying you? >> right.

nothing. this is volunteers. >> we have beans, parsley, ground up flowers. >> reporter: so you will never get hungry. >> of course not. [ laughter ] >> reporter: roger thomas will drive the honda sponsored float tomorrow. 34th year he has been undercover steering the route and never seeing one bit of the parade. >> reporter: you are driving blind. >> completely blind. picture an umbrella on the ground wandering around. lot of fun. >> the corner of orange grove and colorado boulevard will be jammed with thousands tomorrow. and further down colorado avenue, folks are already staking claim to their favorite viewing spots. >> we have been at this spot since 1985. >> i will be here today until tomorrow. >> reporter: what are you going to do to occupy your time? >> i have my ipad, iphone, i am

going to play games. [ laughter ] >> reporter: the theme for this year's parade is the places you will go. tomorrow stanford hopes to go somewhere they haven't gone since 1972, that is the winner's circle of the rose bowl. reporting live at l.a. live, fred inglis, ktvu channel 2 news. a teenager is killed, shot as she walked with friends. the emotional reaction from the police chief and his plan to find ia shooter. -- find a shooter. >> how cold will it be for the final hours of 2012 coming up.

131. that is how many people were killed in oakland this year, including a 15-year-old girl. 346 patty lee -- ktvu's patty lee tells us police think the

shooter wasn't old enough to drive yet. >> reporter: not old enough to drive but old enough to carry a gun and shoot someone his own age. >> collection of toys serves as a memorial for the 15-year-old girl shot to death sunday afternoon. also hit the girl's friend a14- year-old boy who ran to safety. >> he was real scared. >> reporter: this resident said the boy ran a city block to get away. >> right here is where the bullet went in. we sat him down, me and other people, and put a towel around his league. >> reporter: police are still interviewing him as well as other witnesses about the 131 homicide, one of 12 involving children. >> very, very discouraging and embarrassing to the city and

myself as a police chief. >> reporter: he renewed his call to the community to help identify the suspect. a boy, 13-15 years old. the suspect and his victims knew each other. the fact this wasn't a random crime is small comfort. >> i don't think it is safe. this is the 4th homicide here. >> the complex seen its share of violence. few expect the police department to solve the problems. >> they need help. they can't do it. they can't be in all these places at different times. >> reporter: police haven't had a chance to look at video from surveillance cameras in that area. coming up at 6:00 p.m., we will share their plan to tackle the gun violence in the city next year. reporting live, patty lee, ktvu channel 2 news.

community leaders gathering to remember the victims of violence this afternoon. we will have more coming up. a convicted killer on death row is waiting for a ruling that could set him free. marvin pete walker was convicted in 1980 of killing a 15-year-old boy. the court of appeals is considering whether he was improperly shackled during his trial. a former official from clayton convict offend felony embezzlement for a hearing today. he chose to go on a vacation after a clerk said the hearing had been vacated. calls went unanswered. the hearing has been rescheduled for friday. back in october a jury found

him guilty of taking $160,000 from one of his clients. he is facing four years in prison. the last day of the year was beautiful with plenty of sunshine. we will give you a live look here. interstate 80. there are no chain requirements tonight and traffic is failing. roads are clear. traffic is flowing smoothly. more than 3-1/2 hours from ringing in the new year in new york city. a live picture here from times square. the beautiful ball that will drop at midnight. a million people are expected to be in times square plaza as the count down begins. there are hundreds of thousands of them there. the ball is covered with 2,688 crystals and 32,000 l.e.d.es. the weather forecast tonight, near freezing and cachance of snow flurries. tonight times square will be

the safest place in the world. new york city isn't the only city that drops things at midnight. dozens of cities have their own drops. north carolina, pennsylvania, drops pickles. ohio, a fish. and wisconsin, drops an 80- pound wedge of cheese. in georgia. interesting. whether you are staying at home or heading out, let's go to rosemary. >> quiet, cold weather. if you are going out, bring a jacket. a thick one if you don't like the cold. sun is setting and temperatures are falling. upper 40s around the bay area.

47 napa. 50 san francisco. 49 hayward. winds light out there. coming from the west and southwest, this will be temporary. winds brought on by a weak disturbance over the bay area. clouds. we are watching the system moving through. as it does it is bringing clouds and high level moisture. take a look at this. we have high level moisture out there. this not hitting the grounds. maybe an outside chance of a sprinkle. this will continue to pass through and most of this is virga, not hitting the ground. picking it up at this hour. mostly cloudy. 9:00 p.m., 10:00 p.m., midnight, partly cloudy skies. over night we will be clear and temperatures will be cold. new year's day morning, tomorrow morning, we got rain, it will remain off the coast

line. again, another outside chance at maybe a sprinkle along the coast for tuesday morning and then it is out of here. sunny for the afternoon. we have a spare the air day tomorrow. tomorrow morning it will be chilly. you may want to light up a fire. into the evening, we are into the 40s by 8:00 p.m. 41 santa rosa. into had evening, temperatures continue to fall. upper 30s in napa at midnight. 38 in santa rosa. 45 san francisco for the fire works. 43 in san jose. where temperatures falling over night. when i come back, what you can expect for new year's day. spare the air day and the coldest weather we have seen so far on the way as well. more on that coming up. if you can't keep dim elements safe, shut it down,

the -- dimp elements safe, shut it down. >> and the memorial made by the pentagon that will make its debut tomorrow. ñsxóxgñ

new information on secretary of state hillary clinton. she has been hospitalized in new york since yesterday after doctors found a blood clock

related to -- clot related to a concussion. doctors say she didn't have a stroke and no damage has been found. hillary clinton wim stay in the hospital for the -- will stay in the hospital for the next 48 hours. >> while secretary of state hillary clinton remains hospitalized, congress release as report on the attack at the u.s. consulate in benghazi. >> they walked into the compound and set it ablaze due to extremely poor security. >> the leaders of the senate homeland security committee released a report, a special report. it found the state department ignored security threats ahead of the attack. four americans died in that raid, including u.s. ambassador chris stevens who grew up in

the bay area. >> it is not responsible for us, for the government to keep them in those very dangerous places unless we provide them with adequate security. >> it found the u.s. intelligence community knew benghazi was dangerous and unstable. they called on americans to close facilities over sea if they can't project. officials say -- can't protect. officials say they have made improvements since the attack. new concern about a doom's day prophecy from warren jeff. he is serving a life sentence for child sexual assault. from prison he said the world will end between 2013. law enforcement officials are concerned about a mass

casualties among his followers. tomorrow's road parade will mark the first time the defense department has an official float as it honors veterans from the korean war. officials say it serves as a reminder of the sacrifices made of the veterans. the pentagon's participation comes ahead of the 60th anniversary that ended the conflict in a stalemate. live in oakland where a service wrapped up for murder victims in 2012. how people are remembering those victims and what the pastor thinks can reduce the violence. >> and tomorrow is the first spare the air day of the season and the colder temperatures have people finding a way to deal with them. [ female announcer ] no more paper coupons.

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complete bay area news coverage continues right now, this is ktvu channel 2 news at 5:00 p.m. almost want to break down in tears. and cry out tagod why -- to god why. >> heart break and healing as families look back on a year of tragedy. many are celebrating the start of a fresh new year but in oakland 2012 brought grief for 100 families. ktvu's lorraine blanco is live at a vigil for victims of violence. >> reporter: each time someone is killed here in oakland a cross goes up at the church. all those crosses were handed out to the victims. one mom never noticed them out

here till her son's name was on one of them. >> eric. age 18. >> reporter: a true cross to bear for the families of 131 people killed this year. >> never knew what this was about till today and now here i am standing here, you know, as a parent just -- i never thought i would be here. >> reporter: her son was shot to death as he was heading home from halloween. he one is of too many remembered today in oakland. >> you just almost want to break down in tears. and cry out to god, why. >> reporter: he says we can look to a higher power and to each other. her grandson was gunned down in

september. >> we have to do something about it. we are losing everybody. losing the people we are leaving the world to. >> reporter: he spoke with the priest in newtown said who said he would be praying with oakland. there were 28 more homicides this year compared to last year. lorraine blanco, ktvu channel 2 news. san jose officials said investigators are conducting interviews and examining evidence as they look for what caused a fatal fire. the fire broke out saturday night in a apartment in san jose. three died in the fire. the mother escaped the flames that destroyed the apartment. the fire also left three people injured. a woman accused of running

down several pedestrians and killing one pleaded not guilty. she is accused of vehicular manslaughter, drunk drivic and hit and run. she had a -- driving and hit and run. a 56-year-old grandmother was killed, her two relatives were injured. she is dure in court in two weeks. investigators are on their way to oregon to a tour bus crash. it rolled once before going down an embankment. 9 people were killed. 30 were hurt. the national transportation safety board said investigators will be looking at the road conditions and the bus company. there is a chill in the air this new year's eve. ktvu's jade hernandez is live with that and some of the dangers brought on by the cold.

>> reporter: this ice rink will be open half hour past midnight. it will be cold on and off the ice but it is not the only place where people are lking about the weather. >> reporter: the owner says business is up. >> wasn't a lot of rain. the ski resorts were doing poorly. >> reporter: this winter temperatures stayed cold. >> we always have a rush before thanksgiving. people wanted to get a fire place in by thanksgiving. you know, build its own heat. >> reporter: this morning drivers encountered black ice. a car down an embankment. this truck lost control. but this afternoon skaters took the fall in temperatures with ease. >> it is cold.

you get warm by moving. >> i don't want to break my bones. [ laughter ] >> i am just watching. >> reporter: he came for fire works and remembers last year a wet and rainy san francisco. >> cold. beautiful. we came from modesto. >> cold. >> reporter: low business kept her fingers busy knitting. >> it is cold here. >> reporter: tomorrow will be the first spare the air day of the season. >> we had a lot of wet, unsettled weather that helped air quality. last year we had a dry, cold winter and it made for unhealthy air quality. >> cold now, we still have the bulk of the winter coming up. it will be a good season for us. >> reporter: several chimney sweeps credit the lack of spare the air day for keeping them

busy. jade hernandez, ktvu channel 2 news. the first flu related death is a 51-year-old man from orange county. he died last week from influenza b. a flu shot is the best defense and there is still time to get vaccinated. california's two senators sponsored a bill to redesignate a land as a national park. the site features tower rock formations and cavs. a donate thon in san francisco ended 35 minutes ago but not before bringing in donations from 700 donors. good will says there were long lines on mission street. december 31 is the biggest day for donations as people take advantage of the last day of

the year to make tax write offs. >> tax write off, which is always helpful. it is really about the spirit of giving. feel fortunate good things happened this year to me. >> today's donate-thon included music, and free zoo passes. for more on how you can give go to www.ktvu.com. they rarely encounter gunfire but they are arming themselves with bullet proof helmets. this equipment is special. >> the court that said today it is a risk that is up to you to take.

the president and congress renewed a wire tapping law. allows officials to listen in on over seas phone calls without a warrant. the government can still snoop on americans. the white house said the law provided vital to defending the country -- defending the country from terrorisms. thousands of dollars of

safety equipment that regulates alcohol sales. the department bought more than $70,000 worth of bullet resistant helmets and gas masks. they say it is essential to the safety of its agents, even though they are rarely exposed to gunfire. 5 new driving laws go into effect tomorrow. drives arrested on suspicion of dui will have to give a blood sample and drives can show proof of insurance on a smartphone. and cars with a clean air vehicle sticker ride for free on toll lanes and the chp can activate silver alert and new standards for red light cameras. you think santa might be taking time off but that is not

the case. >> this is the annual racing santas. 1,000 santas raced through the streets. this year's theme, santa claus saves lives. they took donations that will go to shelts for -- shelts for elder -- shoulders for -- shelters for elderly. >> and we are gearing up for chilly temperatures on your new year's eve. just how cold it will be coming up.

look at you guys with your fancy-schmancy u-verse high speed internet. you know, in my day you couldn't just start streaming six ways to sunday. you'd get knocked off. and sometimes, it took a minute to download a song. that's sixty seconds, for crying out loud. we know how long a minute is! sitting, waiting for an album to download. i still have back problems. you're only 14 and a half. he doesn't have back problems. you kids have got it too good if you ask me. [ male announcer ] now u-verse high speed internet has more speed options, reliability and ways to connect. rethink possible.

hundreds of mourners packed a church in new york to pay respects to a fallen firefighters. he was one of two first responders who were shot and killed in new york on christmas eve. the father of the gunman in the school massacre in newtown claimed his son's body. he claimed the body on thursday. he didn't say where his son will be buried. he opened fire at sandy hook elementary school and killed 20 children and six staff members. he also killed his mother. new at 5:00 p.m., a push to

save a dog from death. we told you about him when he attacked a police source in san francisco in august. ktvu's david stevenson is live with the latest move to keep the dog alive. >> reporter: late this afternoon the attorney for the owner obtained this restraining order, it prevents the city from euthanizing the dog. >> reporter: this is charlie. a pitbull. last august he attacked a u.s. park police horse. chasing him for a mile and a half. >> typical dog behavior. based on what we know, it is not typical to pursue a horse that you are afraid of. >> i saw the wounds but i am not sure how they occurred.

bad things that were bound to occur. >> reporter: he is held by animal control and facing deaths for months now. the owner mounted an online campaign to raise support. today on the deadline for him to surrender the dog they said they would try to transfer him to a pet rescue. >> we can't do anything unless he surrenders the dog. charlie is still his property. >> reporter: charlie was diagnosed with predtory behavior. -- predatory behavior. he isn't sure whether he will surrender his pet. >> they aren't capable of handling the situation. the way they have been treating charlie and me. >> reporter: a hearing on his

fate is set for january 11. reporting live in san francisco, david stevenson, ktvu channel 2 news. apple ended the year back in the $500 billion club. stock was up 4.4% by the closing bell after apple lost ground in the final business quarter and dropped below the mark of $500 billion in market capitalization. they are the 6th company to top 500 billion and they are the most valuable company in the world. facebook, the final day of trading it was up 2%. they have been trying trying to regain value. stock debuted as the largest offering ever but lost value. taking you first to russia.

where many of the parties are closed at this hour. this happened at noon our time. the president gave an optimistic new year's eve address. and this is london where the new year arrived an hour and a half ago. thousands of people gathered to watch fire works. >> we showed you the preparations in san francisco for fire works tonight. let's go to rosemary tonight. will we be able to see it? >> yeah. mostly cloudy right now. partly cloudy skies by midnight. temperatures will be cold. bundle up. but again we are looking at dry conditions and partly cloudy skies. most of us warm into the low 50s this afternoon. under partly cloudy skies. right now 48 in novato. 50 san francisco. 49 in haward. dinner on new year's eve, we

are chilly in areas. fairfield 45 degrees. storm tracker two a weak system moving through the bay area. we are catching the tail end. well to the north over oregon, washington. but we will continue a watch this slide through. picking up high level moisture within the clouds that are over head. we can see green here. most of this not hitting the ground. i will not rule out the possibility of a stray sprinkle. this slides through. partly cloudy skies by midnight. 40s is what we are expecting around the bay area. 45 degrees in san francisco if you are headed out for the fire works. tomorrow morning, sunny and cool. behind the system we are going to get cold air. perhaps the coldest weather we have seen this season and with tomorrow we have an advisory for a spare the air day.

the freeze watch comes tomorrow night, tuesday night, wednesday morning, valley, mountains, subfreezing temperatures are expected. and we will all be chilly. the north bay will have that watch tomorrow night into wednesday morning. tomorrow morning, patchy frost, partly cloudy skies, cold, 31 santa rosa. 38 oakland. afternoon highs for tomorrow, like today, 52 in berkeley, san francisco. 51 pleasanton. 53 san jose. there is your extended forecast. quiet, dry weather. chilly but dry. a difference we have seen, you know, actually it will be a nice difference that we are shifting into into the weekend. we will remain with no rain.

>> good news. >> thank you. great america score as legal victory. the risk you take when getting on some of the bumpy rides at california amusement parks. well, well, well.

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twitter is going crazy with the news at kim kardashian is pregnant. the news went viral on twitter

and facebook after they announced the pregnancy last night. kardashian and her mom were in the crowd when he sang. green day is going back on the road. new tour dates were announced today. they canceled part of their tour after the lead singer had a melt down in september. following that he headed to treatment for substance abuse. they scheduled 11 new concerts. the first in chicago in march. officials say a winning ticket sold in san francisco hit all the right numbers in fantasy five. officials say it is one of three that matched the numbers in saturday's drawing. 24, 4, 20, 32, and 12 are the

lucky numbers. regulators may be nearing a settlement with banks. thousands of foreclosed homeowners say companies mismanaged theirome loans. a settle -- their home loans. it will be part of a larger deal involving 14 banks and $10 billion. people who love bumper cars and rides at amusement parks do so at their own risk. the supreme court over turned a ruling against great america. amusement parks are not responsible for injuries suffered on thrill rides because there is an aassumption of risk -- an assumption of risk. a coming up, new developments to share with you in the case

of a killing of a man. >> and we near the fiscal cliff in washington, d.c. we will break down the impact it could have here in california.

complete bay area news coverage starts right now, this is ktvu